The fund focuses on promising MFIs which have a positive social impact. Promising MFIs are institutions which have a proven business model, have reached or are close to reaching financial sustainability and have a strong social vision and mission focused on positive impact for the ultimate clients. We focus mainly on Tier 2 MFIs, those at an intermediate stage of maturity, which have strong social aims. The fund does not directly engage with the end-clients of the MFIs (micro-entrepreneurs, small savers and insurance policy holders) as this activity requires local presence and local knowledge and is best done by locally implanted MFIs.
The fund invests in developing countries in Africa, Asia and Latin America. The decision to invest will be based less on the overall level of development of the country in question, but rather more on the merits of the individual cases, i.e. the potential benefit for the local population and the prospects of autonomy for the MFI. Due diligence looks at quantitiative and qualitative criteria including the Institutional structure of the MFI, its social profile (social mission, targeted clients, product offering, quality of established links with customers, etc.) and its financial robustness.